A warehouse is only as good as its connections.

If it’s not near major transportation routes, it’s missing the mark. And today amidst a strained supply chain environment, intermodal access is the backbone of smart site selection.

With tariffs, reshoring, and geopolitical uncertainty reshaping logistics, choosing a warehouse with strong intermodal transportation access is more critical than ever.

While square footage and rental rates matter, transportation can make up as much as 50% of total logistics costs—far outweighing the 3–6% typically spent on real estate.

Proximity to intermodal hubs—enabling smooth transitions between truck, rail, air, and sea—can dramatically boost both efficiency and the bottom line.

In other words, smart site selection isn’t just about space—it’s about strategic positioning. And in today’s market, every mile matters.

Understanding Intermodal Transportation

Moving freight is about building a system that can pivot, scale, and withstand shocks. Gone are the days where it’s all about getting things from point A to point B.That’s where intermodal transportation comes in. By orchestrating multiple modes of transport—rail, truck, air, and sea—into a single, integrated network, intermodal logistics turns physical infrastructure into a competitive asset.

The power of intermodal lies not in any one mode, but in how they work together. Each offers distinct strengths—rail brings cost-efficiency and sustainability over long distances, trucking ensures last-mile precision, air freight accelerates time-sensitive deliveries, and maritime moves massive volumes at global scale.

“If your warehouse is a mile too far from intermodal, you’re burning margin before the truck even starts.”
— Joanne Liu, Global Logistics Lead, GE Appliances

When aligned through intermodal hubs and seamless container transfers, these modes create a fluid, responsive freight network that drives down costs, increases reliability, and reduces environmental impact.

Key Intermodal Options:

• Rail: Ideal for long-distance, bulk shipments. Rail transport is notably cost-effective, with average costs around $0.05 per ton-mile, compared to $0.10 to $0.25 for trucking. Additionally, rail is approximately four times more fuel-efficient than trucking, moving a ton of freight nearly 506 miles per gallon of fuel, according to the Bohle Compacy.

One intermodal train can carry the equivalent of 280 trucks, removing congestion from highways and reducing greenhouse gas emissions by 75% per ton-mile compared to road transport.

Source: Environmental Protection Agency (EPA)

• This data map from the Department of Transportation can be used to visualize the intermodal connections for freight transfer.

• Truck: Trucking offers unmatched flexibility across the supply chain. It’s the only mode that provides true door-to-door service, making it essential for last-mile delivery and regional distribution. While it comes at a higher cost per ton-mile compared to rail or maritime, trucks can access areas that other modes can’t, including rural or low-density regions. It’s also highly responsive—ideal for just-in-time (JIT) delivery models and replenishment strategies.​
• Air: Air freight is the fastest mode of cargo transport, often used for perishable goods, electronics, pharmaceuticals, and emergency replenishing. The trade-off is cost—air freight can be 4–5 times more expensive than trucking and up to 16 times more than maritime shipping. Yet, when speed outweighs cost, air becomes an indispensable mode.
• Maritime: Ocean shipping is the workhorse of global trade—handling over 80% of world commerce by volume. It’s best suited for high-volume, non-urgent shipments such as raw materials, manufactured goods, and industrial equipment. While slower than other modes, its per-unit cost efficiency makes it the preferred method for long-distance international trade.

“If you’re not near an intermodal hub, you’re adding days, dollars, and headaches to every shipment.”
— Dan Miller, VP of Logistics Strategy, Prologis

Strategic Advantages of Intermodal Access

Integrating multiple transportation modes offers several benefits:​

• Cost Compression with Scale: Full truckload may offer flexibility, but it comes at a premium. Intermodal solutions—particularly the combination of rail and drayage—offer a drastic reduction in per-ton transportation costs. Data from NCESC and RSI Logistics shows intermodal rates averaging around $105.01 per net ton, less than half the $214.96 cost of over-the-road trucking. These savings scale exponentially across national networks and high-volume shipping lanes.
• Network Resilience and Redundancy: Intermodal connectivity builds optionality into your supply chain. When one mode is strained—be it due to driver shortages, fuel spikes, or port congestion—having seamless transitions to rail or inland ports ensures continuity. Warehouses with intermodal access serve as adaptive pressure valves, absorbing disruptions without compromising fulfillment timelines.
• Precision and Throughput: Far from being a slower alternative, modern intermodal systems are highly synchronized. Containerized freight reduces transloading, cuts down on dwell time, and supports just-in-time (JIT) and just-in-case (JIC) inventory strategies. For warehouses positioned near inland ports or Class I rail hubs, this translates into faster turnaround and tighter delivery windows.
• Sustainability and ESG Positioning: Rail and maritime transport produce significantly lower emissions per ton-mile than trucks, making intermodal the clear winner in carbon-sensitive operations. As environmental compliance and ESG reporting become table stakes, intermodal access becomes more than a green talking point—it’s a strategic lever for brand differentiation and regulatory alignment.

Hot Intermodal Hubs

• Chicago, Illinois: As the largest inland port in North America, the CenterPoint Intermodal Center in Elwood, Illinois, encompasses over 1,500 acres and includes facilities for both Union Pacific and BNSF Railway. The Chicago region handles 47% of the nation’s intermodal rail containers and 28% of rail cars, moving goods worth $641 billion annually.
• Dallas-Fort Worth, Texas: This region has emerged as a key intermodal hub, offering access to major highways, airports, and rail lines, facilitating efficient distribution across the southern United States.​
• Savannah, Georgia: Home to one of the fastest-growing ports in the U.S., Savannah provides direct rail connections to major markets, enhancing its appeal for warehousing and distribution. The Port of Savannah has seen warehouse development triple over the past five years, proving how intermodal access directly drives demand and lease-up velocity in industrial real estate.

Navigating Tariffs and Reshoring Trends

Global trade is being reshaped in real time.

A looming 145% tariff on Chinese imports is a structural shock that’s forcing enterprises to reengineer logistics flows, often through tariff-neutral countries or duty-deferring strategies like bonded warehousing.

In this climate, reshoring is no longer theoretical. With 287,000 U.S. jobs announced in 2023 due to reshoring and foreign direct investment, the movement toward domestic manufacturing has become a defining trend rather than a reactionary tactic.

What does this mean for warehouse site selection? Locations must now be more than just centrally priced—they need to operate as dynamic nodes within a volatile global system. Facilities near intermodal hubs can pivot faster, absorb disruption, and optimize routing across land, air, and sea. In a landscape where trade lanes shift overnight, intermodal access becomes a hedge against geopolitical volatility and a lever for long-term supply chain agility.

Site Selection Checklist: Intermodal-Centric Strategy

Corporate tenants can use this checklist to assess whether a potential site aligns with the infrastructure needed to support speed, flexibility, and cost savings. When evaluating warehouse locations, consider:

• Proximity to Class I rail terminals (target: within 25 miles)
• Access to major highways and beltways
• Distance to international airports
• Connectivity to seaports or inland ports
• Availability of drayage services
• Labor pool accessibility
• Zoning regulations for 24/7 operations

Takeaways for Tenants

|In an era where supply chain agility and cost-efficiency are critical, intermodal transportation access stands out as a strategic imperative in warehouse site selection. By leveraging the strengths of various transportation modes and positioning warehouses near intermodal hubs, businesses can enhance their operational resilience, reduce costs, and better navigate the complexities of global trade.​

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